Bitcoin has pulled back from its post-election high of nearly $110,000 to around $80,000, raising questions about cryptocurrency’s direction in 2025, according to experts who participated in Wednesday’s etf.com Crypto Outlook for 2025 webinar.

The discussion, featuring cryptocurrency executives from Bitwise Asset Management, Grayscale Investments and Defiance ETFs, explored how market volatility persists despite a seemingly favorable regulatory environment under President Donald Trump’s administration.

“When you heard about the election results, there was this automatic kind of momentum in the price of Bitcoin,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. “All coins were surging. Institutional money was flooding into crypto and into Bitcoin. And here we are today with Bitcoin hovering at a much lower price.”

The panel identified multiple factors influencing current market sentiment, with all three experts emphasizing that recent tariff-related uncertainty has spooked investors, causing a pullback in crypto alongside other risk assets.

Katherine Dowling, general counsel and chief compliance officer at Bitwise, noted a fundamental shift away from the enforcement-driven approach that characterized the previous administration.

Dowling explained that the current administration is returning to a more traditional regulatory approach where rules are established before enforcement actions. Under the previous Securities and Exchange Commission leadership, enforcement actions were often used to establish policy. She emphasized this shift isn’t deregulation but rather a restoration of normal regulatory processes.

This changing dynamic has led to a wave of optimism among issuers, according to David LaValle, senior managing director and global head of ETFs at Grayscale. He noted that numerous companies are filing for approval of crypto ETFs beyond the existing Bitcoin and Ethereum products. LaValle pointed out that multiple single-asset token ETPs, including those focused on Solana and other cryptocurrencies, have entered the SEC’s standard 240-day review process.

“It opens up the opportunity for the SEC, issuers, industry participants, exchanges to have a really thoughtful dialogue around whether or not the product should be permitted for listing and trading,” LaValle said.

The panel also discussed Trump’s recent announcement of a “Strategic Bitcoin Reserve,” explaining that while details remain unclear, it represents a significant federal endorsement of digital assets.